A source in NMRCL said German government’s lending agency KfW, which has sanctioned a loan of over Rs3,700 crore, had become restive over delay in sanctioning of the proposal.Ashish Roy | TNN | June 21, 2016, 11:30 IST

NAGPUR: Chief minister Devendra Fadnavis has assured that the extra floor to space index (FSI) and 1% hike in stamp duty for funding Nagpur Metro rail will be approved by the urban development ministry within a week. Fadnavis, who holds the urban development portfolio, told TOI that certain formalities have to be completed before the ministry could clear the proposal and hence it took some time. These proposals were mooted more than a year ago.

One of the reasons for delay in clearing the proposals, especially the one pertaining to extra FSI, is that developers and builders of the city had demanded several changes in the proposed development control rules (DCR) for the Nagpur Metro rail corridor, which is 0.5km on both sides of the Metro track. These objections and suggestions were submitted during or before the public hearing held on the issue.

Premium on extra FSI and the 1% extra stamp duty are going to be major sources of revenue for Nagpur Metro Rail Corporation Limited (NMRCL). It will also provide extra funds to Nagpur Improvement Trust (NIT) and Nagpur Municipal Corporation (NMC), which have 5% share each in the project. Half of the revenue from these sources will go to NMRCL’s kitty while the remaining 50% will go to NMC or NIT depending on whose land the property lies on.

A source in NMRCL said German government’s lending agency KfW, which has sanctioned a loan of over Rs3,700 crore, had become restive over delay in sanctioning of the proposal. Agence Francaise de Developpement (AFD), which is slated to provide a loan of around Rs1,000 crore, was also enquiring regularly about the approval from government. “It is not only a question of revenue but also passenger traffic. Unless extra FSI is allowed along the Metro rail corridor, the ridership of the Metro will not reach required levels,” he added.

If extra FSI is allowed in the Metro rail corridor then more people will live in this area. Due to proximity to the Metro rail, these people are more likely to use this mode of transport. This is known as transit oriented development (TOD) and is a common model to make mass rapid transport systems (MRTSs) viable.